HAMMER METALS LIMITED — Capital/Financing Update 2021

Mar 29, 2021

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NORTH ORELIA DRILLING COMMENCES

ASX RELEASE 30 March 2021

DIRECTORS / MANAGEMENT

Russell Davis Chairman

• Drilling has commenced with an air core program designed to test soil geochemical anomalies identified at North Orelia

• The program is partly funded by a WA Government EIS grant and will complete approximately 10,000m of drilling at previously untested anomalies (see ASX announcement 15 September 2020)

• A detailed gravity survey planned for Bronzewing South has also commenced with the survey designed to better define structures and targets on the Bronzewing South property

Daniel Thomas Managing Director

Ziggy Lubieniecki Non-Executive Director

David Church Non–Executive Director

Mark Pitts Company Secretary

Mark Whittle Chief Operating Officer

Hammer Metals Ltd ( ASX:HMX ) (“ Hammer ” or the “ Company ”) is pleased to advise that drilling has commenced at its Yandal Project with a planned 10,000m air core program to test previously untested targets on the northern Orelia trend. The program is expected to be completed during April with results likely to be received through the second quarter of this year (see Figure 1 and 2).

The first trend to be tested is roughly coincident with Hammer’s Target 3 anomaly but extends along the Target 3 zone to the north and south. This is a significant anomaly and is approximately 5.6km in length and up to 800m in width (at the 3ppb gold contour). Gold is closely related with presence of arsenic, antimony and tellurium.

The second trend located to the east of Target 3 and close to a Granite-Greenstone contact is approximately 1.1km by 800m (at the 3ppb gold contour). No drilling has been conducted over this large anomaly.

CAPITAL STRUCTURE

ASX Code: HMX

Share Price (29/03/2021) $0.087 Shares on Issue 750m Market Cap $65.3m Options Unlisted 27m Performance Rights 6.5m

Other discrete targets near Target 1 and to the east of previous drilling at Target 4 are also planned for this program.

A follow up gravity survey at Bronzewing South has also commenced with the survey area to focus on the trend immediately south of the Bronzewing gold mine (see Figure 3). The survey will help aid definition of the cross-cutting fault structures whilst also identifying zones of interpretated quartz and carbonate veining.

Hammer’s Managing Director, Daniel Thomas said:

“The team is enthusiastically looking forward to re-commencing field activities in the Yandal region for this year and progressing the anomalous soil sample zones identified during last year’s field programs.

The second quarter is shaping as a busy period for Hammer with the return to drilling in both the Yandal and Mount Isa regions. A return to drilling in the Mount Isa region is also scheduled for April with a number of excellent targets likely to form the basis of a significant field program in 2021.”

T (08) 6369 1195 E info@hammermetals.com.au

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ASX:HMX
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ABN 87 095 092 158 P Unit 1, 28-30 Mayfair Street, West Perth, WA 6005

hammermetals.com.au

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Figure 1. North Orelia Soil Survey Gold Anomaly Results
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Figure 2. North Orelia Soil Survey Multi-Element Anomalies

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Figure 3. Bronzewing South area showing the area of the Phase 2, 50m station spaced gravity survey (dark blue)

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Figure 4. Hammer Metals Bronzewing South Project Area

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This announcement has been authorised for issue by the Board of Hammer Metals Limited in accordance with ASX Listing Rule 15.5.

For further information please contact:

Daniel Thomas Managing Director

T +61 8 6369 1195 E info@hammermetals.com.au

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About Hammer Metals

Hammer Metals Limited (ASX: HMX) holds a 100% interest in the Bronzewing South Gold Project located adjacent to the 2.3 million-ounce Bronzewing gold deposit in the highly endowed Yandal Belt of Western Australia. Hammer holds a strategic tenement position covering approximately 2,200km[2] within the Mount Isa mining district, with 100% interests in the Kalman (Cu-Au-Mo-Re) deposit, the Overlander North and Overlander South (Cu-Co) deposits and the Elaine (Cu-Au) deposit. Hammer also has a 51% interest in the emerging Jubilee (Cu-Au) deposit. Hammer is an active mineral explorer, focused on discovering large copper-gold deposits of Ernest Henry style and has a range of prospective targets at various stages of testing.

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